Consumer Packaged Goods
November 27, 2012
Last week, a bankruptcy judge gave Hostess Brands the okay to begin shutting down the 82-year-old company. The liquidation is expected to take approximately one year. But the Twinkies, Ding Dongs, and Wonder Bread brands may not be lost; it is reported that potential bidders have reportedly been flooding the company with inquiries.
Hostess plans to close 33 bakeries, 565 distribution centers, and 570 bakery outlet stores as part of the liquidation process; 18,500 employees will lose their jobs. The company will reportedly retain a workforce of 3,200 to begin the liquidation process, and expects to need only about 200 employees by late March.
An attorney for Hostess said the company had received numerous inquiries from possible buyers; Flowers Foods Inc., the maker of Tastykake and Nature’s Own baked goods, is considered a likely bidder for Twinkies and other Hostess assets.
When closing a plant or manufacturing facility, many companies don’t think about the equipment inside the building until the last minute, leaving a significant portion of their assets to be sold off quickly for a fraction of their actual value. You need to make the most of the assets your company still owns. For most companies, equipment is one of the most significant investments when they open a facility, and even though production is shutting down, most times, these assets have residual value that can be recovered or redeployed where it can be of use.
EquipNet has compiled best practices of companies that have recovered a significant portion of their initial investment before closing their doors. To learn more about shuttering a plant, please feel free to contact EquipNet or download our free eBook, Seven Plant-Closing Mistakes and How to Avoid Them: A Guide to Maximizing Returns and Minimizing Damage When Closing a Facility.
Categorias: Consumer Packaged Goods
